Rupee weakens as dollar gains in interbank and open markets

Karachi: In light of Pakistan’s rising debt obligations, increasing demand for foreign exchange, and global factors such as the surge in crude oil prices due to the US reducing tariffs on Chinese goods, the US dollar once again strengthened against the Pakistani rupee in both foreign exchange markets on Tuesday.

Although the issuance of Rs30 billion in green sukuk this week and other positive economic indicators temporarily brought the dollar down by 9 paisas to Rs281.47 during trading in the interbank market, the trend did not hold.

Due to renewed demand for imports and external payments—combined with expectations of a $1 trillion investment in the US during President Biden’s visit to Saudi Arabia, which raised concerns of a stronger dollar globally—the dollar closed 11 paisas higher at Rs281.67 by the end of trading.

In the open currency market as well, the dollar appreciated by 19 paisas, closing at Rs283.69.